U.s. Bancorp · NYSE:USB
U.s. Bancorp — Barclays Capital 2011 Global Financial Services Conference
34 slides from U.s. Bancorp's conference presentation, Sep 14, 2011
Slide 1: Barclays Capital 2011 Global Financial Services Conference
Richard K. DavisChairman, President and CEOSeptember 14, 2011 Barclays Capital 2011 Global Financial Services Conference
Slide 2: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including st
Slide 3: Overview, Performance, Current Environment, Investing for Growth
U.S. Bancorp OverviewPerformanceCurrent EnvironmentInvesting for Growth
Slide 4: U.S. Bancorp Businesses
U.S. Bancorp Businesses 2Q11 Dimensions Asset Size $321 billionDeposits $215 billionLoans $200 billionCustomers 17 millionNYSE Traded USBMarket Capitalization* $42 billionFounded 1863Bank Branches 3,086ATMs 5,086 * As of September 9, 2011 Overview
Slide 5: Mix of Businesses
Mix of Businesses Payment ServicesRetail Payment SolutionsCorporate Payment SystemsGlobal Merchant Acquiring Wealth Managementand Securities ServicesWealth ManagementCorporate Trust ServicesFund ServicesU.S. Bancorp Asset ManagementInstitutional Trust and Custody Consumer and SmallBusiness BankingMe
Slide 6: Performance
U.S. Bancorp OverviewPerformanceCurrent EnvironmentInvesting for Growth
Slide 7: U.S. Bancorp Performance
U.S. Bancorp Performance Date 6/30/2011 7/1/2011 7/4/2011 7/5/2011 7/6/2011 7/7/2011 7/8/2011 7/11/2011 7/12/2011 7/13/2011 7/14/2011 7/15/2011 7/18/2011 7/19/2011 7/20/2011 7/21/2011 7/22/2011 7/25/2011 7/26/2011 7/27/2011 7/28/2011 7/29/2011 8/1/2011 8/2/2011 8/3/2011 8/4/2011 8/5/2011 8/8/2011 8/
Slide 8: Loan and Deposit Growth
2Q10 3Q10 4Q10 1Q11 2Q11 Loans 191.2 192.5 195.5 197.6 198.8 Deposits 183.3 182.7 190.3 204.3 209.4 Loan and Deposit Growth Average BalancesYear-Over-Year Growth 2Q11 Acquisition AdjustedLoan Growth = 3.5%Deposit Growth = 9.6% 2.4%$197.6 4.0%$198.8 4.0%$191.2 5.8%$192.5 2.0%$195.5 11.9%$204.3 14.2%$
Slide 9: Loan and Commitment Growth
Loan and Commitment Growth Performance Average balances; total loan growth above adjusted for acquisitionsReported loan growth linked quarter: 2Q10 = -0.9%, 3Q10 = 0.7%, 4Q10 = 1.5%, 1Q11 = 1.1%, 2Q11 = 0.6%Reported loan growth prior year quarter : 2Q10 = 4.0%, 3Q10 = 5.8%, 4Q10 = 2.0%, 1Q11 = 2.4%,
Slide 10: Peer Banks
Peer Banks Bank of America SunTrust Wells Fargo KeyCorp BBT Fifth Third Regions PNC U.S. Bancorp J.P.Morgan Peer Bank Ticker SymbolsBAC Bank of America PNC PNCBBT BB&T RF RegionsFITB Fifth Third STI SunTrustJPM J.P. Morgan USB U.S. BancorpKEY KeyCorp WFC Wells Fargo Performance
Slide 11: Loan Growth vs. Peers
Loan Growth vs. Peers Average balances; USB loan growth above adjusted for acquisitions (FCB)Reported loan growth 2Q11 vs. 1Q11 = 0.6%, 2Q11 vs. 2Q10 = 4.0%Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Loan Growth 0.005
Slide 12: Deposit Growth vs. Peers
Deposit Growth vs. Peers Average balances; USB deposit growth above adjusted for acquisitions (FCB and BAC securitization trust business)Reported deposit growth 2Q11 vs. 1Q11 = 2.5%, 2Q11 vs. 2Q10 = 14.2%Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC Peer 1 USB Peer 2 Peer 3 Peer 4 Peer
Slide 13: Loan and Deposit Growth vs. Peers
2007 Noninterest Bearing 33334 Savings 58298 Time 39813 Loan and Deposit Growth vs. Peers 1Q11 Noninterest Bearning 57310 Savings 112761 Time 44812 Ending Deposits4Q07$131 billion Ending Deposits2Q11$215 billion 1Q11 Commercial 50550 Commercial Real Estate 35490 Residential Mortgage and Home Equity
Slide 14: Revenue Growth
Revenue Growth Total RevenueYear-Over-Year Growth 8.7% 7.9% 7.9% 4.6% 3.8% 2Q10 3Q10 4Q10 1Q11 2Q11 Reported 4519 4587 4721 4519 4690 Performance NII Pay DSC Trust Mtg Comml Other East 54 17 9 6 5 5 4 Fee Income46% Net InterestIncome54% Service Charges Trust & Inv Mgmt Mortgage Comm'l Products All O
Slide 15: Prudent Expense Management
Prudent Expense Management Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI, USB and WFC Performance 2006 2007 2008 2009 2010 2Q10 3Q10 4Q10 1Q11 2Q11 USB 0.454 0.492 0.469 0.484 0.515 0.524 0.519 0.525 0.511 0.516 Peer Median 0.572 0.577 0.629 0.585 0.627 0.615 0.622 0.642 0.647 0.643 Efficiency
Slide 16: Pre-provision Income Growth
Pre-provision Income Growth Pre-provision income excludes securities gains (losses) netPeer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC 2010 Consumer 34 Wholesale 27 Wealth Management 5 Payments 35 2007 Consumer 40 Wholesale 23 Wealth Management 12 Payments 25 Pre-provision Income2Q07 YTD
Slide 17: Performance Metrics
Performance Metrics Performance Source: SNL and company reports; Peer banks: BAC, BBT, FITB, JPM, KEY, PNC, RF, STI and WFC USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ROA 0.0112 0.0104 0.0094 0.0072 0.0065 0.0002 USB Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Pee
Slide 18: Credit Quality
Credit Quality Performance 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 NPA $ Change 76 49 155 290 357 489 727 626 386 184 91 -261 -171 -212 -159 -217 NPA % Change 0.13 0.08 0.22 0.34 0.31 0.33 0.37 0.23 0.12 0.05 0.02 -0.07 -0.05 -0.06 -0.05 -0.06 3Q07 4Q07 1Q08 2
Slide 19: Capital Position
Capital Position 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 TARP 0 0 0 0 24.4 25.3 0 0 0 0 0 0 0 0 0 Tier 1 Capital Ratio 0.083 0.086 0.085 0.085 0.106 0.109 0.094 0.095 0.096 0.099 0.101 0.103 0.105 0.108 0.11 Tier 1 Common Ratio 0.056 0.057 0.056 0.057 0.051 0.054 0
Slide 20: Capital Management
Capital Management Strong capital generation and historically high payout ratioGoal to resume normal capital management Reinvest Acquisitions Dividends ShareRepurchases 20 - 40% Targets: 30 - 40% 30 - 40% Investment criteria:Strategic fitReturn > cost of capital (10-11%) 2003 2004 2005 2006 2007 200
Slide 21: Current Environment
U.S. Bancorp OverviewPerformanceCurrent EnvironmentInvesting for Growth
Slide 22: Regulatory Environment
Regulatory Environment Existing regulatory oversight actionsFuture regulatory oversight actionsDodd-Frank Wall Street Reform and Consumer Protection ActConsumer Financial Protection BureauResidential mortgage foreclosure policy and procedures $ in millions, estimated reduction to revenue* 4Q11 impac
Slide 23: Foreclosure Issues
Foreclosure Issues Mortgages repurchased and make-whole paymentsRepurchase activity lower than peers due to conservative credit and underwriting culture and disciplined origination process (primarily conforming loans, ^ 95% sold to GSEs)Outstanding repurchase and make-whole requests balance = $123 m
Slide 24: Interest Rate Risk Management
Interest Rate Risk Management CurrentEnvironment The Company manages its exposure to changes in interest rates in order to minimize the volatility of net interest income and the market value of assets and liabilitiesUSB is currently slightly asset sensitivePrimary impact from lower rate environment
Slide 25: Investing for Growth
U.S. Bancorp Overview Performance Current Environment Investing for Growth
Slide 26: Investing for Growth
Investing for Growth Investing for Growth Technology Investments Tier 4 Data Center Branch Hardware and Software Internet Channel Home Mtg Origination Platform Mobile Banking Channel Call Center Telephony Distribution Channel Integration 2005 2006 2007 2008 2009 2010 2011 Fcst CapX 301 540 484 519 7
Slide 27: Investing for Growth: Acquisitions
Investing for Growth Investing forGrowth PaymentsMerchant processing portfolio of Santander-MexicoMerchant processing portfolio of Citizens National Bank Credit card portfolios from CitiMerchant processing portfolio of MB Financial BankCredit card portfolio of Town North BankSouthern DataCommAIMS Lo
Slide 28: Investing in Innovation
Investing in Innovation Easy Savings with Rewards Best-in-Class Rewards Best Online Customer Experience Environmental Sustainability Prepaid Card Innovation Mobile Merchant Acquiring VITAband Desktop and Mobile Remote Check Deposit Investing forGrowth
Slide 29: Long-term Growth Drivers
Long-term Growth Drivers Return on recent and on-going investments in technology, corporate banking, wealth management, corporate trust, payments and M&APositive leverage to economic recovery, particularly payments and trustMarket share gains, including growth in loans and deposits as "flight to qua
Slide 30: Long-term Growth Expectations
Long-term Growth Expectations Long-term Growth ExpectationsNet Interest Income 5-7%Noninterest Income 8-10% Total Revenue 7-8%Noninterest Expense 4-5%Provision for Credit Losses 6-8% Net Income 8-9%EPS 8-10% Investing forGrowth
Slide 31: Barclays Capital 2011 Global Financial Services Conference
Richard K. DavisChairman, President and CEOSeptember 14, 2011 Barclays Capital 2011 Global Financial Services Conference
Slide 32: Appendix
Appendix USbancorp.
Slide 33: Non-Regulatory Capital Ratios
Non-Regulatory Capital Ratios Appendix
Slide 34: Barclays Capital 2011 Global Financial Services Conference
Richard K. DavisChairman, President and CEOSeptember 14, 2011 Barclays Capital 2011 Global Financial Services Conference
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